Question

Walter Piecyk, a broker and analyst with securities firm Fulcrum Global Partners, heard a rumor that Nokia Corp., the largest customer of RF Micro Devices Inc., was going to delay equipment orders from RF Micro. After short-selling RF Micro stock, Piecyk spread the rumor, which was highly sensational. RF Micro's stock fell 5 percent that day. The next day, when RF Micro publicly denied the rumor (which was completely false), the stock fell another 8 percent, apparently because the market believed the rumor, not RF Micro. The market price continued to fall, as the rumor persisted, and Piecyk eventually covered his short sale, making a profit of about $8,000. RF Micro asked the NASD to take disciplinary action against Piecyk on the grounds that he had not adequately investigated whether there was a reasonable basis for the rumor. Did the NASD discipline Piecyk?